Business Services Industry

VOIP service providers face tough options.(CONSULTANT'S CORNER)

Business Communications Review, May, 2005 by Kuehn, Richard A.

There is no question that voice over IP has become core technology, but as the hype continues, I keep wondering about the role of Congress and the FCC. Both are active on this issue--the FCC began a rule-making process to deal with VOIP 14 months ago, and Congress is discussing whether to rewrite the 1996 Telecommunications Act.

Much of the activity in Washington stems from the service providers' desire to use regulation as a competitive weapon, to write the rules in a way that gives them an advantage. And so we hear how VOIP-based transmission and switching service differs from what the legacy PSTN delivered. Specifically, that voice via circuit-switched technology was priced on the basis of time (duration of a call) and distance (how far away the caller...

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